You must have heard it said before that the best time to invest in premium real estate was 10 years ago and you wonder why? According to the world bank, Nigeria has an urban population growth rate of 4.1 per cent, with about 52% of the country’s population living in urban areas. This shows that in order to meet the steady growth in demand for housing, around 700,000 houses will have to be built every year.
That’s not all, National Bureau of Statistics stated that Nigeria’s real estate sector accounted for 6.39% of the country’s GDP in 2020 which means that Nigeria’s real estate market is not only large but greatly valuable. The facts are not hidden, the need to invest in premium real estate is not just about the profit at stake, it is also crucial for nation-building.
What then is real estate investing? It is the purchase or sale of land and buildings to earn money and it is a great way to invest since property investments have excellent return potential and help you diversify your portfolio. It also serves as a very good shield from recessions and other adverse economic conditions.
Almost anyone including you can invest in it although it requires time, patience and money of course. Here are 5 simple ways to invest in premium real estate for less
1. Buy Rental Properties
One of the most common ways to make steady cash flow in real estate is with rental properties; buy a house and rent it out. It requires a great deal of effort on your part to find and vet tenants, take care of repairs and maintenance, and deal with any other problems that arise but it’s an excellent way to build wealth and generate income.
2. Use Real Estate Investment Trusts
Investing in a REIT entails you giving money to a trust or corporation which purchases a property. You’ll get a portion of the dividends as the property appreciates. It is an easy way to get into the commercial premium real estate world with a potentially high yield.
3. Flip Properties
When an investor buys an undervalued residential property, renovates it, then sells it at a higher price, it is called ‘flipping’ or ‘trading’. This type of investment is best for seasoned real estate investors who know how to hedge their bets with the local market.
4. Invest in Building
Going all the way to build is a smart way to invest, however, this is heavily dependent on your access to funding. However, this is the most-tasking of all four methods in this article. Do your due diligence, discover large home-builders and partner with them to supply needed materials needed for construction and renovation of houses.
It is not too late to invest in premium real estate but make sure to pick an investment that will serve you. Decide on how much capital you are willing to invest and begin to save money. Before you make the move, also ensure to speak with a real estate expert, you do not want to invest badly. Lastly, do not forget that it requires time and patience.